Ability-Biased Technical Change and Productivity Bonus in a Nested
Production Structure: A Theoretical Model with Endogenous Hicks-Neutral
Technology Spillover
Ability-Biased Technical Change and Productivity Bonus in a Nested
Production Structure: A Theoretical Model with Endogenous Hicks-Neutral
Technology Spillover
Author(s): Gouranga Gopal DasSubject(s): Economy, Business Economy / Management, ICT Information and Communications Technologies
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: productivity bonus; technology spillovers; absorption; congruence; trade; skill; CGE nesting;
Summary/Abstract: This paper develops a model of endogenous trade-mediated productivity spillover in which jointly trade-intensity, capital-intensity of production, and skill-intensity for adoption of technology from an exogenously available stock of world knowledge determine firm’s productivity. The representative firm, in the process of maximising profit (or minimising costs), takes into account the benefits of technological improvements embodied in imported intermediates. Sectors with higher skilled labour intensity will have an advantage in extracting the ‘bonuses’ from spillovers. The framework is useful for exploring technology adoption, considering wage premium, investigating innovative changes in sectors, and analysing productivity differences.
Journal: Scientific Annals of Economics and Business
- Issue Year: 66/2019
- Issue No: 3
- Page Range: 415-450
- Page Count: 36
- Language: English
